Retirement in the United States can be a good decision. If you have a good Social Security benefit, living in this American country is a great option because of the opportunities of all kinds that we find. If you enjoy travel or cultural activities, U.S. cities offer all kinds of opportunities. But be careful when applying for Social Security, because it can be dangerous to rely on the monthly SSA payment.
There are several reasons to think that relying on the Social Security benefit as the only monthly payment is not a good idea. Momentary inadequacy and possible future underfunding puts SSA payments at risk. Despite this, there is still time to fix the situation, but for now the trust funds are under threat.
Reasons not to rely on Social Security alone
If you are thinking about retiring and collecting Social Security alone you may want to look at this list before you do anything. It doesn’t matter if you want to retire at 62, 67 or 70. These facts are important for everyone who wants to collect a pension in the future:
- Inflation: every year prices increase and increase. This causes people who collect Social Security to lose purchasing power. With inflation continuing to increase, thinking about only one source of income may seem totally impossible.
- The low COLA increase: Although Congress raises benefits through the COLA, the increase is never quite enough. The calculations to raise pensions are done once a year, but prices increase daily. This causes pensioners to fall far behind in terms of prices.
- Lack of trust funds: It is quite possible that by 2035 the trust funds will be exhausted and therefore benefits will have to be cut. It is estimated that only 80% of total benefits will be payable by that year. Therefore, relying on this payment is not very wise, as it could fall at any time.
Look for another source of income
Ideally, looking for another source of income is essential. If you want to have a peaceful retirement with enough money, you can always create a business that does not require much effort. You can also invest in a business to make a profit later on. Any option is good to supplement your Social Security benefit.
Although you also have to take into account the tax issue. If you are collecting SSA and also have other sources of income, you should keep a close eye on the taxes you have to pay. If you have any doubts, contacting a specialist lawyer is the best option, so that he or she can advise you on the best course of action.
